• Source:PTI
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Afcons Infrastructure Ltd  IPO:  Afcons Infrastructure Ltd (AIL), the flagship infrastructure engineering and construction company of Shapoorji Pallonji Group, has filed draft papers with market regulator Sebi to raise Rs 7,000 crore through an initial public offering (IPO).

The company's mega IPO is a combination of a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 5,750 crore by promoter Goswami Infratech Private Limited. The offer also includes a reservation for subscriptions by eligible employees, as per the draft red herring prospectus (DRHP) filed on Thursday.

Currently, promoters and promoter group entities own a 99.48 percent stake in Maharashtra-based Afcons Infrastructure. The company may also consider raising Rs 250 crore in the "pre-IPO placement" round. If such placement is completed, the fresh issue size will be reduced.

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Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified institution with a leading presence in engineering & construction, infrastructure, real estate, water, energy, and financial services sectors across the globe. The group companies build mega structures, develop iconic landmarks, and drive innovative technologies in water management, renewable energy, oil & gas, and power.

Afcons, a group company, operates across five major infrastructure business verticals -- marine and industrial, surface transport, urban infrastructure, hydro and underground, and oil and gas. In the last 10 financial years, Afcon has completed 76 projects in 15 countries with a total contract value of Rs 52,220 crore.

In terms of listed industry peers, Afcons compares itself with Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL), and Dilip Buildcon Ltd( DBL). AIL's order book has increased at a CAGR of 7.6 percent from Rs 26,249 crore in the financial year 2021 to Rs 30,406 crore in the financial year 2023.  It stood at Rs 34,888 crore as of September 30, 2023.

In fiscal 2023, the company's total revenue from operations grew by 14.7 percent to Rs. 11,018.97 crore to Rs.12,637.38 crore. 357.60 crore in FY 22 FY22 profit after tax increased by 15% to Rs. 410.86 crores

ICICI Securities Ltd, DAM Capital Advisors Ltd, Jefferies India Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuwama Wealth Management Ltd, and SBI Capital Markets Ltd are the book-running lead managers for the issue.

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(With PTI Inputs)